Uganda Is Not Alone Against Kenya's Oil Deal: Rwanda, Burundi, the Democratic Republic of the Congo, and Two More. 

East African presidents in one photo

Since landlocked East African nations began to express reluctance to import their petroleum via Kenya, Kenya is expected to lose billions of shillings in the oil trade.

Due to the contentious government-to-government agreement between the Kenyan government and the Gulf nations, which has resulted in a sharp rise in gasoline costs, Uganda has already decided to cease importing petroleum via Kenya.

South Sudan, Burundi, Rwanda, and the Democratic Republic of the Congo are all thinking of doing business with Tanzania rather than Kenya in the oil sector, according to the CEO of a Kenyan oil company who was speaking to the BBC.

Kenya is the primary importer of petroleum products for the four nations since they lack a seaport.

East African presidents in one photo

According to information made public, the nations are not pleased with the higher gasoline tariffs or Kenya's government-to-government oil arrangement.

Fuel is becoming more costly for EAC nations who import it via Kenya due to the Finance Act 2023's increasing taxes and levies.

The area is keeping up with its supremacy and has coordinated infrastructural initiatives. 

Kenya will ultimately suffer severe consequences, the CEO said. Those countries have alternatives and they have decided that Tanzania will be their main importer. 

The countries of Tanzania and Sudan stand to gain the most if landlocked East African nations choose not to use the Port of Mombasa as the entry point for their petroleum exports.

Kenya Ports Authority photo

Tanzania will be used by Uganda to maintain its petroleum reserves, as it has previously said.

Sudan has five significant ports that might be used as an alternative to the Port of Mombasa, despite the country's present state of turmoil impeding regional commerce.

Kenya used to provide 90% of Uganda's gasoline imports, with just 10% coming from Tanzania. This indicates the amount Kenya stands to lose as a result of the contentious oil contract and adverse business environment.

Furthermore, Uganda is primarily the route by which 40% of Kenya's total gasoline imports reach the DRC and South Sudan.

Kenya is projected to lose at least Ksh15-Ksh 50 billion in income if Uganda and Tanzania reach an agreement about petroleum imports.


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